The pullback on Wall Street came amid light volumes and likely reflected caution about what the New Year might bring, given Wednesday was the first session when trades actually settle in January. The Dow fell 0.56%, while the S&P 500 lost 0.84% and the Nasdaq 0.89%.
Contracts to buy previously owned U.S. homes fell in November to their lowest level in nearly a year, which was seen by many as a sign that rising interest rates could be weighing on the housing market. the Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 2.5% to 107.3 in November from 110 in October, data released by National Association of Realtors showed yesterday, 28 December 2016.
In commodity markets, oil came off the boil after data showed a surprise build in US crude inventories. US crude eased 42 cents to $53.64 a barrel, while Brent was last quoted down 16 cents at $55.93.
Among Asian bourses
Australia Market surges to 17 month peak
Australian share market finished slight higher, achieving a 17 months peak after reversing early weakness, with the Gold, Metals & Mining, and Financial sectors led shares higher. The benchmark S&P/ASX200 index gained 0.25% to 5,699.1 points, its highest close since July 31, 2015. Rising stocks outnumbered declining ones on the Australia Stock Exchange by 567 to 374 and 295 ended unchanged. The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 0.04% to 12.164.
Shares of Gold miners were the best performers after a rise in the precious metal's price, with Newcrest Mining adding 3.4% to A$19.26, Northern Star jumping 5.1% to A$3.48, and Evolution Mining gaining 5.2% to A$1.93. Mining stocks were also higher, with Rio Tinto up 56 cents to A$60.74 and BHP Billiton up 6.0 cents to A$25.50.
The property sector weighed on the market, with GPT Group dropping 2.4% to A$4.97, Mirvac shedding 2.3% to A$2.13, and Stockland losing 2.6% to A$4.53.
Woolworths continued to rise after announcing the sale of its petrol business to BP, adding 18 cents to A$24.49, while Coles owner Wesfarmers was 27 cents stronger at A$42.80.
Nikki drop to near three-week low
The Japan share market closed a near three-week low, as risk sentiments dragged down by tracking Wall Street losses overnight and an stronger yen that dragged down export-oriented names. The 225-issue Nikkei average dropped 256.58 points, or 1.32%, to close at 19,145.14. The Topix index of all first-section issues ended down 18.41 points, or 1.20%, at 1,518.39.
The higher yen took a toll on export-oriented names, including automakers Toyota, Fuji Heavy and Mazda, camera maker Canon, industrial robot manufacturer Fanuc and electronic parts supplier Murata Manufacturing.
Financial issues, such as mega-bank groups Mitsubishi UFJ, Mizuho and Sumitomo Mitsui, insurers Dai-ichi Life and Tokio Marine and brokerage firm Nomura, met with selling after their U.S. peers went down in New York on Wednesday.
Toshiba Corp.'s shares plunged 17%, their third straight day of double-digit losses after the company said it anticipates huge losses related to its acquisition of Chicago Bridge & Iron.
Shares of Takata Corp., the Japanese air bag manufacturer at the center of a massive recall, surged 16% amid speculation that it will reach a settlement as soon as next month with U.S. authorities on criminal charges related to its air bag troubles.
China Stocks end tad lower
Mainland China stock market closed lower, with optimism spurred by fading liquidity stress overshadowed by continued wary about the prospect of regulatory measures to curb aggressive investment in stocks by insurers. Sector performance was mixed on the mainland, with gains in infrastructure stocks offsetting losses in property stocks. The blue-chip CSI300 index dipped 0.1% to 3,297.76, while the Shanghai Composite Index lost 0.2% to 3,096.10 points.
The market found some solace from progress made to avoid defaults resulting from a recent bond scandal. Sealand Securities said on Thursday it had signed agreements with 19 counterparties to resolve the forged bond dispute. But investors stayed cautious following news that the insurance regulator planned to establish a discriminatory supervision system that would keep a closer watch on some unconventional insurance products, in the latest move to rein in aggressive stock investment.
BlueFocus Communication rose 10% after forecasting 2016 net income that beat analyst estimates.
PetroChina Co. fell for the fourth time in five days in Shanghai trading but remains up more than 4% in December as oil climbed to an 18-month high.
Indonesian shares ends up 2%
Indonesian share market ended up as much as 1.96%, a highest since Nov. 11, helped by financial and consumer stocks, after government promises to provide significant yields next year due to improvement of their fundamentals.
Bank Central Asia, the biggest bank by market value, ended 4.24% higher while automaker Astra International rose 3.83%.
HSI ends up 36 pts
The Hong Kong stock market closed up, as strength in tech stocks outweighed the bearish hint from Wall Street, where stocks lost the most in two months overnight. The market also got support from mainland investors, who spent 3.7 billion yuan buying Hong Kong shares via the Shanghai-Hong Kong Stock Connector scheme. The Hang Seng Index ended up 36 points to 21,790. The H-share index also rose 12 points to 9,312. Turnover increased to HK$52.5 billion from HK$51.5 billion on Wednesday.
Market heavyweights were mixed. China Mobile (00941) nudged up 0.49% to HK$81.45, while HSBC (00005) was unchanged at HK$61.95. Tencent Holding was up 2.2% to HK$187.6, after tech giant statement on Wednesday that the long-awaited "Little Program" feature of its popular messaging application WeChat would go live on Jan. 9.
China's Ministry of Commerce said it will continue boosting auto sales next year. Brilliance China (01114) gained 1.92% to HK$10.62 while BYD Company (01211) rose 1.85% to HK$41.2. Geely Auto (00175) dipped 1.76% to HK$7.25.
Singapore Market ends 0.3% lower
Singapore share market closed 0.3% lower, dragged by financial and industrial stocks. The government's advance estimate of fourth-quarter GDP is due on Tuesday next week.
The biggest losers on the benchmark index were Comfortdelgro Corporation Ltd, down 3.9% to its lowest close in a month, and Singapore Technologies Engineering, down 1.2%.
Sensex, Nifty hit over one-week closing high
Indian stock market end higher due to sudden spurts in buying at the fag end of the trading as December derivatives contracts expired today amid recovery in the rupee. Subdued trend seen in Asian markets after Wall Street suffered a mild setback capped the gains. The Sensex rose 155.47 points or 0.59% to settle at 26,366.15, its highest closing level since 19 December 2016. The Nifty rose 68.75 points or 0.86% to settle at 8,103.60, its highest closing level since 19 December 2016.
IFCI surged 13% after India's biggest bourse NSE filed its draft prospectus for a Rs 10,000-crore Initial Public Offer (IPO) of equity with the Securities and Exchange Board of India (Sebi).
IRB Infrastructure Developers rose over 2% after the company said it received letter of award from National Highways Authority of India (NHAI) for six-laning of 90 km stretch of National Highway (NH) 79A and NH 79 in Rajasthan.
India Tourism Development Corporation (ITDC) surged 18% ahead of its listing on the National Stock Exchange (NSE) on Friday.
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